Slide 1: Banca Generali 1H12 Results and Business Update
Banca Generali 1H12 Results and Business Update Milan, 25 July 2012
Slide 2: Today's Agenda
Today’s Agenda ¾ 1H 2012 Results ¾ Net Inflows, AUM and Recruiting ¾ Business Update ¾ Closing Remarks 2 Banca Generali 1H 2012 Results and Business Update
Slide 3: 1H12 net profit soars to €67m, highest in the bank's history
1H 2012 Results Banca Generali 1H12 net profit soars to €67m (+80% yoy), the highest level in the bank’s history Net Profit (YoY) Positive business momentum despite challenging markets (€ m) 67.3 1H12 Net Inflows at €1,044 m (9.0% of AUM, annualized1), +80% equal to 83% of FY 2011 net inflows, of
Slide 4: Consolidated 1H 2012 Profit and Loss Account: main highlights
1H 2012 Results Consolidated 1H 2012 Profit and Loss Account: main highlights (€ m) 6M11 6M12 % Chg 6M11 6M12 % Chg (reported) (reported) (excl. GIL) (excl. GIL) ¾ Higher ¾ Higher Interest Interest income income Net Interest Income 21.5 51.3 138.5% 21.5 51.3 138.6% thanks thanks to LTRO, to LTRO, hi
Slide 5: Positive results throughout the board, total revenues up 42% yoy
1H 2012 Results Positive results spread throughout the board, driving total revenues up 42% yoy Net Banking Income (LfL) (€ m) 173.7 Strong increase in interest income (+139% yoy) +42% thanks to the contribution of LTRO, higher investment yield 51.3 (30%) On the banking portfolio, higher deposits 12
Slide 6: Interest income: ordinary business growth and significant contribution from LTRO
1H 2012 Results Interest income: ordinary business growth and significant contribution from LTRO Net Interest Income (LfL) LTRO delivers a LTRO assets’ expiry broadly stable 1.1 (€ bn) contribution 51.3 until 2014 Time deposits, 0.3 0.2 18.9 LTRO LTRO assets have +139% fully-matched (€ m) 4Q12 …
Slide 7: Positive gross commissions (+9.6% yoy), despite unfavourable financial markets
1H 2012 Results Positive gross commissions (+9.6% yoy), despite unfavourable financial markets Breakdown of Gross Commissions (LfL, YoY) Quarterly Gross Commissions (LfL) (€ m) Higher entry fees due to higher life inflows 180.0 6.0 +9% 6.5 +9.6% 31.9 (18%) 164.3 1Q12 2Q12 5.1 (3%) 13.3 (8%) 12.5 (7%
Slide 8: Short-term development in management fees derives from long-term growth strategy
1H 2012 Results Short-term development in management fees derives from long-term growth strategy Trend in management fees … the move towards In the short-term a few bps lost reflects… defensive products due to poor (€ m) financial market trend BUT Short-term (yoy) Average funds/ FoF/ portfolio manag
Slide 9: Net commissions surge by 19% yoy, pay-out level in line
1H 2012 Results Net commissions surge by 19% yoy, even if pay-out level remains in line with year’s level Pay-out trend excl. perf. fees (LfL) Net Commissions (LfL) 47.0% 45.3% (€ m) 43.6% 112.9 +19% 1H11 1Q12 1H12 94.8 Pay-out ratio trend (ex-perf. fees) 47.2% 45.7% 45.1% 45.3% 1H11 1H12 44.5% 43.6
Slide 10: Cost/income ratio at its lows of 39.6% thanks to tight cost discipline
1H 2012 Results Cost/income ratio at its lows of 39.6% thanks to a tight cost discipline Operating costs, net of stamp duty (LfL) Cost/Income ratio (€ m) 71.0 +2.1% 80% 74.7% 69.6 4.8 70% 60% 62.3% 56.5% 55.8% 50% 53.3% 40% 39.6% 30% 2007 2008 2009 2010 2011 1H12 1H11 1H12 Split of operating costs (
Slide 11: Gross profitability at 1.91%, a top level for the bank
1H 2012 Results Gross profitability at 1.91%, a top level for the bank Average Monthly Underlying Assets AUM Profitability (LfL) Funds & Portfolio management assets +33 bps Poor financial markets trend, 1.91% company’s guidance for more 9.8 9.1 defensive investment products 0.26% 1.58% 1H11 1H12 0.0
Slide 12: Solid capital position confirmed
1H 2012 Results Solid capital position confirmed Net equity and Excess Capital Tier 1 Capital Ratio Total Capital Ratio dividends paid €61.4m 14.3% €49.9m 13.3% €61.3m 113.2 289.2 12.5% 12.8% 281.2 262.4 89.6 11.1% 89.1 11.0% 2010 2011 1H12 2010 2011 1H12 2010 2011 1H12 2010 2011 1H12 … Total divide
Slide 13: Today's Agenda
Today’s Agenda ¾ 1H 2012 Results ¾ Net Inflows, AUM and Recruiting ¾Business Update ¾ Closing Remarks 13 Banca Generali 1H 2012 Results and Business Update
Slide 14: In the first six months, net inflows almost matching 12 months rolling average
Net Inflows, AUM and Recruiting In the first six months, net inflows almost matching 12 months rolling average (€ m) 2,400 Banca Generali annual net inflows 2,000 1,600 1,200 Average 2000-2011 net inflows1 2,076 1,743 800 1,360 1,246 1,270 1,260 1,044 970 400 773 686 435 453 - - 244 - 400 2000 2001
Slide 15: 1H 2012 net inflows almost match 2011 full year inflows' level
Net Inflows, AUM and Recruiting 1H 2012 net inflows almost match 2011 full year inflows’ level Total net inflows… 1,044 +80% Good balance between organic drivers and recruiting 579 of high profile professionals Exploiting positive word of mouth to acquire new clients 1H 2011 1H 2012 Positive e
Slide 16: Net inflows and positive fund performance lifted assets to €24.6 bn
Net Inflows, AUM and Recruiting Net inflows and positive fund performance lifted assets to €24.6 bn (+4% YoY) Asset Breakdown (€ bn) 24.6 1H12 avg. performance +4% of key in-house managed products 23.7 6.1 (25%) Port. Mgmt w. capital Mutual Funds/SICAV 6.5 (28%) +7.8% Protection (Target) 2.9 (12%) P
Slide 17: The recruiting policy remained focussed on high-quality professionals
Net Inflows, AUM and Recruiting The recruiting policy remained focussed on high-quality professionals 1H12 Recruiting Results AUM/FA €m No. of FAs AUM (€m) -1% Banca Banca Generali Generali hired hired 32 32 32.2 +6% 31.9 209 professionals 30.2 professionals in in 1H2012, 1H2012, with with an an
Slide 18: Banca Generali increasingly an attractive name for high-profile professionals
Net Inflows, AUM and Recruiting Banca Generali increasingly an attractive name for high-profile professionals 2009-1H12 avg. No. of recruits 2012 YE Target of new recruits Target raised due 60 to exceptionally +20% favourable hiring 44 50 conditions 32 Average 1H 2012 Old New 2009-2011 Banca Gener
Slide 19: Today's Agenda
Today’s Agenda ¾ 1H 2012 Results ¾ Net Inflows, AUM and Recruiting ¾ Business Update ¾ Closing Remarks 19 Banca Generali 1H 2012 Results and Business Update
Slide 20: Management actions: launching new products and enhancing platform efficiency
2012 Business Update Management actions concentrated on launching new products and further enhancing the efficiency of the business platform Expanded offer on emerging markets debt and currency diversification BG Selection - launch of a new bond sub-fund dedicated to Emerging market debt & currenc
Slide 21: Strengthening BG Selection offer in emerging markets debt & currency
2012 Business Update Strengthening BG Selection offer in emerging markets debt & currency Launch of a new bond sub-fund to enrich the offer on emerging markets: “Emerging bond and currency opportunity” BG Selection – FoF offer on Emerging Markets Completing product offer on emerging markets ≥ 20 E
Slide 22: Launch of new third-party flexible bond funds under BG Sicav
2012 Business Update Launch of new third-party flexible bond funds under the BG Sicav umbrella fund Third-party Third-partyretail retailfunds funds NEW BG BGSicav Sicav Wide range of third-party bond funds --third-party third-party-- with currency exposure BG BGSicav Sicav --in-house in-house-- Hi
Slide 23: Wider insurance offer for currency diversification or coupon payments
2012 Business Update Wider insurance offer, with new tools for a currency diversification or for coupon payments whole life policy, no yield guaranteed segregated fund investing in US$ option to switch in € Currency Diversification whole life policy, hedge against fall in US$ rate segregat
Slide 24: Launch of two new equity FoFs on European and International equity
2012 Business Update Launch of two new equity FoFs on European and International equity FoF on European equities (+ conv. bond Europe) Wide choice of funds by investment themes and management style “Expertise Euro” Selected niche investment themes (family business, restructuring, real estate)
Slide 25: Moving towards a paperless platform
2012 Business Update Moving towards a paperless platform 2H 2012 Mobile Site Tablet App G oal: ss e Our aperl p oing g FEP AS IS FEP on TABLET FEP on TABLET with all security tools Release #1 Release #2 (Client and Market updates) (Digital signature) FEP is the tool to coordinate and control FA’s ac
Slide 26: Today's Agenda
Today’s Agenda ¾ 1H 2012 Results ¾ Net Inflows, AUM and Recruiting ¾ Business Update ¾ Closing Remarks 26 Banca Generali 1H 2012 Results and Business Update
Slide 27: Banca Generali growth formula
Closing Remarks Banca Generali growth formula Keep clients’ portfolio safe - Even if this mean losing Organic Growth Our Goals: some short-term bps - More new customers - More share of wallet Earnings growth Focus on FA quality - Training and selective recruiting Solid capital position High-qu
Slide 28: 2012 Upcoming Corporate Events and Investor Relations Contacts
2012 Upcoming Corporate Events NOVEMBER Investor Relations Contacts Su Mo Tu We Th Fr Sa 1 2 3 4 5 6 7 8 9 10 Giuliana Pagliari Approval of 9M 2012 results Head of Investor Relations 11 12 13 14 15 16 17 Tel +39 02 6076 5548 18 19 20 21 22 23 24 giuliana.pagliari@bancagenerali.it 25 26 27 28 29 30 i
Slide 29: Disclaimer
Disclaimer The manager responsible for preparing the company’s financial reports (Giancarlo Fancel) declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law of Finance, that the accounting information contained in this press release corresponds to the document results, books and